Wazua
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Chief Joined: 1/3/2007 Posts: 18,218 Location: Nairobi
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https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: New-farer Joined: 8/1/2019 Posts: 96
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VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw.
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Rank: Elder Joined: 6/23/2009 Posts: 13,769 Location: nairobi
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McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture!
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,218 Location: Nairobi
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obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,769 Location: nairobi
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VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,218 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,769 Location: nairobi
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VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. Alright. I get your pattern. Provisions from the bad debts will affect the bottom line. Potato potato!
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,218 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:obiero wrote:McGill wrote:VituVingiSana wrote: https://www.businessdail...agnant%20in%20practice.
Try this link. The above wasn't working. Though this (what the author says) is easier said than done. Banks do finance on other cashflow metrics but there has to be trust on both sides regarding the integrity of the borrower. Too many stories of funny business on collateralized land. Now imagine trying to collateralize or ringfence inflows on intangibles. Banks got choma'd on loans on cars for Uber, etc. Not necessarily the fault of the drivers/owners but the economy. Or everyone jumping into the same biashara. Watu got burnt on their Boda and phone loans last year. Guys were removing trackers. Some were selling the bodas across the border. How are you going to track down a defaulter in Mandera? I was really wondering what happened to Watu last year btw. The NPL position for some of the banks, will lead to mass write off. If write off is done, hit on PBT, since collateralized lending is not fully provisioned under IFRS9. You know, I know, we all know. All the glorious profit is but a conjecture! A write-off does not affect the P&L. Kaka. This is basic accounting. The write-off is reported as an expense on the company's income statement, reducing net income for the reporting period, which negatively impacts financial performance. The only exemption is for fully provisioned loans, such as unsecured borrowings Provisions affect the P&L. Writeoffs ni mambo za Balance Sheet. Alright. I get your pattern. Provisions from the bad debts will affect the bottom line. Potato potato! IFRS not my pattern. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Wazua
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Portfolio Balancing: Avoid Over Exposure To Financial Sector
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